What are the Irish income tax rates and bands for 2024?

Ireland uses a two-rate income tax system. For 2024, the standard rate is 20% and the higher rate is 40%. The cut-off point at which you start paying the 40% rate depends on your personal circumstances.

For single individuals, the standard rate band is €42,000. Income up to €42,000 is taxed at 20%; income above €42,000 is taxed at 40%. For married couples with one earner, the standard rate band is €51,000. For couples where both spouses work, each can use up to €33,000 of their own income at the 20% rate, and the combined band increases by the lower of the second income or €33,000.

On top of income tax, most earners also pay Universal Social Charge (USC) and Pay Related Social Insurance (PRSI). These are separate levies that apply alongside the income tax calculation. The effective marginal rate for most middle and higher earners, combining income tax (40%), USC (8%), and PRSI (4%), reaches 52%.

Personal tax credits reduce the tax calculated. Every individual receives a Personal Tax Credit of €1,875 and the PAYE Credit of €1,875 (for employees), reducing the income tax bill directly. Unused credits can sometimes be transferred between spouses.